Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Q1 2025 Earnings Presentation
29 slides from Altisource Portfolio Solutions's earnings presentation, May 1, 2025
Slide 1: Altisource Portfolio Solutions First Quarter 2025 Supplementary Information
ALTISOURCE PORTFOLIO SOLUTIONS FIRST QUARTER 2025 SUPPLEMENTARY INFORMATION AUGUST 2022 © 2025 Altisource All Rights Reserved.
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements that involve a number of risks looking statements are subject include, but are not limited to, risks related to customer and uncertainties. These forward-looking statements include all statements that are concentration, the timing of t
Slide 3: Non-GAAP Measures
NON-GAAP MEASURES Adjusted operating income, pretax loss attributable to Altisource, adjusted pretax (loss) Furthermore, we believe the exclusion of more significant non-operational items income attributable to Altisource, adjusted net loss attributable to Altisource, adjusted enables comparability
Slide 4: First Quarter 2025 Overview
FIRST QUARTER 2025 OVERVIEW Continued to drive year-over-year and sequential Service revenue and Adjusted EBITDA1 growth Grew Service revenue by 11% to $40.9 million and Adjusted EBITDA1 by 14% to $5.3 million, compared to Q1 2024 Closed an exchange and maturity extension transaction with our lender
Slide 5: Financial Performance
FINANCIAL PERFORMANCE Service Revenue Business Segments1 Adjusted EBITDA2 Q1 2025 Highlights (vs. Q1 2024) $40.9 $36.9 $36.9 $38.2 $38.4 • Generated $40.9 million of Service revenue, an 11% increase, driven by growth in both $32.9 Business Segments1 $29.1 $29.0 $30.4 $31.4 $10.9 $11.6 $10.8 $11.4 $1
Slide 6: Term Loan Exchange Transactions
T E R M LO A N E X C H A N G E T R A N S A C T I O N S During Q1 2025, we significantly strengthened our balance sheet and reduced interest expense • Completed an exchange and maturity extension transaction with our lenders on February 19 $60M • Closed a $12.5 million super senior credit facility (t
Slide 7: Servicer and Real Estate Segment
S E R V I C E R A N D R E A L E S TAT E S E G M E N T Segment Service Revenue Segment Financial Performance (vs. Q1 2024) • Service revenue of $32.9 million increased 13% from the launch and growth of our renovation business, stronger foreclosure $31.4 $32.9 starts and sales wins $29.1 $29.0 $30.4 •
Slide 8: Servicer and Real Estate – Sales Pipeline and Wins
S E R V I C E R A N D R E A L E S TAT E – S A L E S P I P E L I N E A N D W I N S Attractive Sales Pipeline1 $30.1 $29.4 $26.1 Weighted Average Pipeline 2 Estimated Revenue – End of Quarter Q4'23 Q4'24 Q1'25 Strong Sales Cumulative Wins2,3 $58.4 Wins: $89.0 Estimated Annualized $25.8 $4.7 Service Re
Slide 9: Origination Segment
O R I G I N AT I O N S E G M E N T Segment Service Revenue Segment Financial Performance (vs. Q1 2024) • Service revenue of $8.0 million increased 3% • Adjusted EBITDA1 of $0.5 million was flat $8.0 compared to Q1 2024 $7.8 $7.8 $7.8 $7.0 • Industrywide origination volume declined 1% compared to Q1
Slide 10: Origination – Sales Pipeline and Wins
O R I G I N AT I O N – S A L E S P I P E L I N E A N D W I N S Attractive Sales Pipeline1 $18.0 $13.2 $11.9 Weighted Average Pipeline 2 Estimated Revenue – End of Quarter Q4'23 Q4'24 Q1'25 Strong Sales Cumulative Wins2,3 Wins: $27.5 $12.6 $4.7 Estimated Annualized $10.3 Service Revenue on a Stabiliz
Slide 11: Corporate and Others Segment
C O R P O R AT E A N D O T H E R S S E G M E N T Corporate Financial Performance (vs. Q1 2024) Corporate and Others Adjusted EBITDA1 Loss • Q1 2025 Corporate Adjusted EBITDA1 loss of $7.2 million was $0.9 million more than Q1 2024 due to certain one-time benefits received in the first quarter of las
Slide 12: Business Environment
BUSINESS ENVIRONMENT Default Market • In response to the COVID-19 pandemic, borrowers were provided various relief measures including foreclosure and eviction moratoriums, forbearance programs and loss mitigation measures − These relief measures largely expired at the end of 2021; however, the defau
Slide 13: Conclusion
C O N C LU S I O N • We believe we are positioned to diversify our revenue base and ramp business we have won while maintaining cost discipline and significantly reducing corporate interest expense • Focused on accelerating the growth of certain of our businesses that we believe have tailwinds • It
Slide 14: Appendix
APPENDIX a, Altisource
Slide 15: First Quarter Financial Results
F I R S T Q U A R T E R 2 0 2 5 F I N A N C I A L R E S U LT S $ millions (except per share data) Q1 2024 Q1 2025 Vs. Q1 2024 Service revenue $ 36.9 $ 40.9 11% Revenue 39.5 43.4 10% Gross profit 12.3 13.3 8% (Loss) income from operations (0.5) 3.2 n/m 1 Adjusted operating income 3.0 5.2 76% 1 Pretax
Slide 16: Operating Metrics
O P E R AT I N G M E T R I C S Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Default Related Services Onity1 Serviced Forward Loan Portfolio2: Service revenue3 per delinquent loan4 per quarter Non-GSE $ 210 $ 244 $ 260 $ 241 $ 288 $ 246 $ 275 $ 262 $ 316 $ 331 $ 328 $
Slide 17: Operating Metrics – Hubzu
O P E R AT I N G M E T R I C S Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Hubzu1: Service revenue (in millions)2 $ 8.0 $ 8.1 $ 6.7 $ 5.9 $ 7.7 $ 7.1 $ 7.1 $ 5.8 $ 7.1 $ 7.3 $ 6.4 $ 6.0 $ 6.6 Number of homes sold on Hubzu: Onity serviced portfolios3 653 772 645 579
Slide 18: Hubzu Inventory
H U B Z U I N V E N TO R Y Ending Inventory (in 000’s) 6.9 6.3 6.3 6.5 6.2 6.0 6.0 6.2 6.1 6.0 5.9 5.8 5.8 5.9 5.7 5.6 4.5 4.4 3.4 3.6 3.6 4.1 4.1 3.5 3.5 3.6 3.6 3.7 3.9 4.2 3.4 3.5 3.3 2.4 2.4 2.5 2.6 2.7 2.7 2.4 2.4 2.4 2.4 2.4 2.1 2.0 2.0 2.2 2.2 2.3 2.3 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22
Slide 19: Non-GAAP Measures
NON-GAAP MEASURES Adjusted operating income, pretax loss attributable to Altisource, adjusted pretax (loss) income attributable to Altisource, adjusted net loss attributable to Altisource, adjusted diluted loss per share, EBITDA, Adjusted EBITDA and Segment Adjusted EBITDA are non-GAAP measures used
Slide 20: Non-GAAP Measures
NON-GAAP MEASURES • Adjusted diluted loss per share is calculated by dividing net loss attributable to Altisource after removing intangible asset amortization expense (net of tax), share-based compensation expense (net of tax), cost of cost savings initiatives and other (net of tax), debt exchange t
Slide 21: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation Q1 2024 Q1 2025 ($ in millions except per share data) (Loss) income from operations $ (0.5) $ 3.2 Intangible asset amortization expense 1.3 1.3 Share-based compensation expense 2.2 1.1 Cost of cost savings initiatives and other 0.0 (0.4) Adjusted operating income $ 3
Slide 22: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation Q1 2024 Q1 2025 ($ in millions except per share data) Net loss attributable to Altisource $ (9.2) $ (5.3) Intangible asset amortization expense, net of tax 1.3 1.3 Share-based compensation expense, net of tax 2.0 1.0 Cost of cost savings initiatives and other, net of
Slide 23: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation Q1 2024 Q1 2025 ($ in millions except per share data) Calculation of the impact of intangible asset amortization expense, net of tax Intangible asset amortization expense $ 1.3 $ 1.3 Tax benefit from intangible asset amortization - - Intangible asset amortization exp
Slide 24: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation Q1 2024 Q1 2025 ($ in millions except per share data) Calculation of the impact of cost of cost savings initiatives and other, net of tax Cost of cost savings initiatives and other $ 0.0 $ (0.4) Tax (benefit) provision from cost of cost savings initiatives and other
Slide 25: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 ($ in millions except per share data) Net loss attributable to Altisource $ (9.2) $ (8.3) $ (9.4) $ (8.8) $ (5.3) Income tax provision 0.7 0.7 0.8 0.3 0.7 1 Interest expense, net of interest income 9.3 9.6 9.6 9.3 4.7 Depreciat
Slide 26: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 ($ in millions except per share data) Servicer and Real Estate: Income before income taxes and non-controlling interests $ 9.3 $ 10.0 $ 8.9 $ 9.8 $ 10.9 1 Interest expense, net of interest income - 0.0 (0.1) (0.1) 0.0 Depreciat
Slide 27: Non-GAAP Measures Reconciliation
NON-GAAP MEASURES Reconciliation Q1 2024 Q2 2024 Q3 2024 hn Q4 2024 hn Q1 2025 ($ in millions except per share data) Corporate and Others: Loss before income taxes and non-controlling interests $ (17.6) $ (17.5) $ (17.7) $ (18.2) $ (15.4) 1 Interest expense, net of interest income 9.3 9.6 9.7 9.4 4.
Slide 28: Investor Relations Information
I N V E S TO R R E L AT I O N S I N F O R M AT I O N Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of ABOUT ALTISOURCE innovative services and technologies, Altisource h
Slide 29: Altisource
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